Habit, a Portuguese insurtech specialising in embedded insurance, digital and contextual distribution solutions, has announced the launch of a new protection solution for recurring payments and expenses, called Habit Bill Protection Insurance.
The new product is intended to protect the payment of the end customer’s various regular bills, whether they be utilities (electricity, gas, water, telecommunications or other domestic expenses), house rent, college fees or any other where there is a recurrence of payments for services provided. The insurance offers several capital levels, from €80 to €600, to adapt to different customer profiles and their expenses.
“Habit Bill Protection Insurance” guarantees full payment of invoices in cases of:
● Unemployment – for situations of involuntary unemployment in workers with open-ended contracts
● Temporary incapacity – for situations of temporary inability to work for more than 30 days.
● Hospitalization – for situations of hospitalization longer than 3 days.
● Permanent disability or death – for situations of death or disability of the policy holder.
According to a report by Habit, the payment protection solution, which Habit as MGA is now introducing to the market, is innovative due to the open way in which it is made available. The is insurance is not limited to be associated with a credit process or other types of financing operations (as in traditional PPIs).
Advantages for the final Clients
● Financial security in uncertain times: Provides a safety net that ensures essential bills continue to be paid, even in unexpected situations
● Reduced Financial Stress: Relieves financial anxiety, allowing individuals and families to focus on recovering from challenging times
● Credit profile protection: helps maintain a good credit history, essential for future lines of credit or financing
● Accessibility, flexibility and cost-benefit: with low monthly premiums (from €1.49), it offers significant coverage at an affordable cost and different capital levels
● Personal financial planning: essential for long-term financial planning, offering an additional layer of security.
● Maintaining lifestyle: ensures that customers can continue to pay their bills and maintain their lifestyle in the event of loss of income
And for Companies that want to move forward with embedded B2B2C plays
● Benefit for partner companies: increases customer retention, reduces dispute situations in contexts of non-payment, differentiates its value proposition compared to competitors
● Social responsibility: Demonstrates a commitment to social responsibility by protecting customers against financial hardship.
● Contribution to the economy: Maintains the flow of money in the economy, ensuring regular payments to service providers.
Habit, through its various technological solutions (APIs, white label components and portals), offers its partners the possibility of distributing this new product through different channels and business models:
● Traditional B2C solutions: where distributors can sell the product directly to the end customer, using Habit tools designed for professional insurance agents and brokers. ● Digital solutions: which allow purchases by the end customer through partner websites, apps or other digital assets.
● True embedded insurance approaches: where, in a B2B2C logic, the service provider can offer this insurance to its customers, differentiating its value proposition, increasing customer retention and protecting its turnover.
João Madureira Pinto, Chief Growth Officer at Habit, said: “We believe that this new solution can be an effective tool to mitigate the existing protection gap, in particular in some geographies pressured by reduced wages and lack of adequate protection solutions. With an affordable premium of just €1.49 per month, the customer can protect their lifestyle, ensuring that in the situation of a significant event that negatively impacts his life, he can maintain a set of essential services for himself and his family.”
He added: “For Companies that provide a wide range of services to private Customers, this protection solution will allow the differentiation of the service provided compared to competitors and increase the levels of loyalty, satisfaction and retention of their end customers.”
